In early 2004, the Portuguese-based textiles multinational Fisipe proposed to reduce pay at its Spanish plant by 15% and make 30 employees redundant, in order to be able to sell the operation to a Spanish investor. A mass meeting of workers accepted the proposal, despite the opposition of the workers' committee.
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In early 2004, the Portuguese-based textiles multinational Fisipe proposed to reduce pay at its Spanish plant by 15% and make 30 employees redundant, in order to be able to sell the operation to a Spanish investor. A mass meeting of workers accepted the proposal, despite the opposition of the workers' committee.
Fisipe is a Portuguese-based textiles multinational with a Spanish factory at El Prat in Barcelona. In December 2003, management presented a redundancy procedure (Expediente de Regulación de Empleo) (ES0311108T) affecting the whole 270-strong workforce. The company had previously implemented a redundancy procedure affecting 112 jobs in 2001.
However, after the new redundancy procedure was announced, the Barcelona-based La Seda investment group made an offer to buy Fisipe's Spanish subsidiary. Fisipe management then issued a new proposal, whereby pay at the plant would be cut by 15% and 30 workers made redundant. La Seda will agree to buy the company only if the workers and the workers' committee accept the pay cut and job losses. It will also ask the Catalan Finance Institute of the Generalitat (Institut Català de Finances de la Generalitat) for a 'soft' loan of EUR 12 million. In return, La Seda will make an investment of EUR 7.5 million to increase production at the plant. The investor has presented a feasibility plan to the workers covering the period until 2006, including mortgaging the site and obtaining funding from the public administration.
The workers' committee has not been prepared to accept the reduction in pay or the redundancies and has called for the intervention of the regional government (Generalitat). However, at a mass meeting of the workforce, 157, or 63%, voted in favour of the management proposal. Fisipe workers have demonstrated in front of the Generalitat - a left-wing coalition has recently formed the regional government - calling for public loans for the La Seda investments to be accompanied by monitoring of the purchaser's industrial plans to guarantee the continuity of the firm.
Public opinion and the institutions are currently highly sensitive to the restructuring and relocation of companies, particularly after Lear and Samsung recently transferred production from Spain to Poland and Slovakia respectively (ES0402205F). The Catalan regional government of Catalonia is preparing a 'social pact' with employers and trade unions to deal with unjustified relocations and redundancy procedures.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Workforce and pay cuts at Fisipe, article.
